Rheinmetall AG to Focus on Military, Divests Civil Division

Rheinmetall AG has announced a strategic shift, deciding to sell its civil division Power Systems. The company targets a sale completion by the first quarter of 2026. The move aligns with Rheinmetall's focus on military business, leveraging offers from interested parties. Negotiations are underway with two bidders, with plans to sign a contract soon.

The sale affects not only Power Systems but also related non-operating entities. The decision results in a non-cash impairment of EUR 350 million, classified as discontinued operations under IFRS 5. This impairment has no effect on the liquidity or earnings of continuing operations.

For 2025, Rheinmetall expects sales growth between 30% and 35%, with an operating margin of 18.5% to 19.0%. Operating free cash flow is anticipated to exceed previous estimates.